A Merchant Processing Service (MPS) is a service that facilitates merchants in the secure and safe processing of credit card transactions for the purchase of goods and services. Merchants can choose who they want to work with based on several factors, including cost, convenience, security, support, and other criteria.
Many people go online to make purchases or find deals. But if you’re a business owner that wants to tap into this valuable market you’ll need a merchant processing service (MPS). One big difference between an MPS and PayPal is that an MPS actually provides your customers with the cards they use during the transaction. This is significant for several reasons. First, it’s quite a bit more convenient for the customer, who doesn’t have to reenter all of their information or create a new account. Second, it’s a lower-cost transaction for you and your
Significance of Merchant Processing Services:
A merchant processing service is used by merchants that generate significant amounts of sales from credit card payments. The process of accepting credit cards as a payment option and passing on the transaction information to the issuing bank is much safer than processing payments with a check or cash. The charge may show up on your credit card monthly statement and the money comes out of the customer’s account right away, whereas with a check you would have to wait for it to clear.
Many businesses that sell online are forced to use PayPal or another other online service to manage their business because they can’t afford merchant processing services (MPS). With an MPS, you can accept credit cards and business money transfers with ease. The best part of working with the service is that customers don’t need to provide any personal information or set up an account. They simply go online and shop.
Benefits of Merchant Processing Services:
The advantages of a merchant processing service include:
- Low rates and fees – Many payment providers charge interchange fees, which are fees charged to the merchant for processing the transaction on a card. The fee might be as high as 3%. With a MPS, there are no fixed fees for processing your transactions and you’ll choose what your rate will be based on your transaction volume. This is a great way to save money on your expenses.
Be sure to choose an MPS with a low rate of interchange fees.
- Improve your business visibility – Search engines can’t see PayPal accounts. When customers pay for things using a credit card, it shows up in your store’s search engine rankings and makes you more visible to potential customers. The more sales you get, the better your ranking will become.
With a merchant processing service, you can take advantage of this visibility and earn traffic from prospective customers that are looking for items similar to yours in their area or within a specific price range.
- Track orders – It’s easy to track online orders made via credit card with merchant processing services. You’ll be able to see when your customers placed the order and what items they ordered.
- Reduce fraud – Many merchants are cautious about accepting credit card payments because they don’t want fraud to occur at their store. Payments processed with a MPS can help you verify that you’re receiving all the money that’s due to you and prevent unauthorized charges from happening.
How Does a Merchant Processing Service Work?
Many merchants use a merchant processing service so they can accept credit cards without worrying about paying interchange fees or requiring them to handle transactions themselves. These transactions are handled by the payment processor and typically reported to your bank within two business days.
There are two ways that a merchant processing service works. Some will purchase the customer’s credit card information and add it to their database, while others give your customer an imprint to use instead.
The customer will provide the merchant with their credit card number, name and expiration date when they go through checkout on your website. You’ll send this information to the MPS and they’ll process the transaction for you. The payment processor will then communicate with the customer’s bank or issuer to provide them with authorization before completing the transaction.
Merchant Processing Services Security:
Credit cards have been around for decades now and merchants have had ample time to build up trust in them as a secure way of paying for goods and services. However, there are three main issues that merchants face when accepting credit card payments: unauthorized transactions, fraudulent purchases and chargebacks.
- Unauthorized Transactions – The chances of your customers making unauthorized transactions increase if they use their cards at an illegal location or don’t store the card information in a safe place. With a merchant processing service, you can have constant access to the customer’s account information and ensure that there are no attempts at fraudulent purchases.
- Fraudulent Purchases – If you’re receiving fraudulent charges on your credit cards from customers, you’re going to have to contact the issuing bank so that it can take action against them (or potentially sue them for breach of contract).
Merchant processing services are an essential part of the credit card transaction process that allow merchants to take advantage of the trustworthiness of credit cards as a payment option.
If you’re a merchant and would like to accept credit cards and other forms of business money transfers, you should consider setting up an account with a merchant processing service. Processing payments through an MPS is safer, more convenient for your customers and will help you build up your online reputation by displaying information about your business in the search engines.
If you’re looking for ways to save money on fees and improve your business’ visibility with customers, then consider using one of these services. They’re an affordable way to take advantage of this powerful financial technology and reach new markets instantly.